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Marketing:AnIntroductionFifteenthEditionChapter04ManagingMarketingInformationtoGainCustomerInsightsCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)4.1 Explaintheimportanceofinformationingaininginsightsaboutthemarketplaceandcustomers.4.2 Definethemarketinginformationsystemanddiscussitsparts.4.3 Outlinetheroleofmarketingresearchandthestepsinthemarketingresearchprocess.ObjectivesOutline(2of2)4.4 Explainhowcompaniesanalyzeandusemarketinginformation.4.5 Discussthespecialissuessomemarketingresearchersface,includingpublicpolicyandethicsissues.FirstStop:MarketingResearchatP&G:CreatingIrresistiblySuperiorExperiencesTogaindeepcustomerinsights,P&Gemploysawiderangeofmarketingresearchapproaches—fromtraditionallarge-scalesurveysandsmall-scalefocusgroupstoreal-timesocialmedialistening,mobilesurveys,andbigdataanalytics.ObjectiveOutline4.1Explaintheimportanceofinformationingaininginsightsaboutthemarketplaceandcustomers.MarketingInformationCustomerneedsandmotivesforbuyingaredifficulttodetermine.RequiredbycompaniestoobtaincustomerandmarketinsightsGeneratedingreatquantitieswiththehelpofinformationtechnologyandonlinesourcesToday’s“BigData”Bigdatareferstothehugeandcomplexdatasetsgeneratedbytoday’ssophisticatedinformationgeneration,collection,storage,andanalysistechnologies.CustomerInsightsFreshmarketinginformation-basedunderstandingsofcustomersandthemarketplaceBecomethebasisforcreatingcustomervalue,engagement,andrelationshipsCustomerinsightsteamscollectcustomerandmarketinformationfromawidevarietyofsources.MarketingInformationSystem(MIS)ConsistsofpeopleandprocedurestoAssessinformationneedsDeveloptheneededinformationHelpdecisionmakersusetheinformationtogenerateandvalidateactionablecustomerandmarketinsightsObjectiveOutline4.1SummaryMarketingprocessstartswithacompleteunderstandingofthemarketplaceandconsumerneedsandwantsTurnconsumerinformationintocustomerinsightsMarketingInformationSystemBigDataObjectiveOutline4.2Definethemarketinginformationsystemanddiscussitsparts.Figure4.1TheMarketingInformationSystemAssessingMarketingInformationNeedsAgoodMISbalancestheinformationuserswouldliketohaveagainstWhattheyreallyneedWhatisfeasibletoofferObtaining,analyzing,storing,anddeliveringinformationiscostly.Firmsmustdecidewhetherthevalueoftheinsightisworththecost.DevelopingMarketingInformationInformationneededcanbeobtainedfromInternaldatabasesCompetitivemarketingintelligenceMarketingresearchInternalDatabases(1of2)Internaldata:Throughskillfulcustomerdatabasedevelopmentanduse,StitchFixhasbuilthighlevelsofcustomersatisfactionandloyalty.StitchFixInternalDatabases(2of2)Internaldatabasesarecollectionsofconsumerandmarketinformationobtainedfromdatasourceswithinthecompanynetwork.CompetitiveMarketingIntelligence(1of2)Systematicmonitoring,collection,andanalysisofinformationAboutconsumers,competitors,anddevelopmentsinthemarketingenvironmentTechniquesObservingconsumersfirsthandQuizzingthecompany’sownemployeesBenchmarkingcompetitors’productsConductingonlineresearchMonitoringsocialmediabuzzCompetitiveMarketingIntelligence(2of2)OffersinsightsaboutconsumeropinionsandtheirassociationwiththebrandProvidesearlywarningsofcompetitorstrategiesandpotentialcompetitivestrengthsandweaknessesHelpsfirmstoprotecttheirowninformationRaisesethicalissuesObjectiveOutline4.2SummaryMarketinginformationsystem(MIS)AssessinformationneedsDevelopinformationInternaldatabases,marketingintelligence,andmarketresearchAnalyzeandusetheinformationObjectiveOutline4.3Outlinetheroleofmarketingresearchand

thestepsinthemarketingresearchprocess.MarketingResearchSystematicdesign,collection,analysis,andreportingofdatarelevanttoaspecificmarketingsituationfacinganorganizationApproachesfollowedbyfirms:UseownresearchdepartmentsHireoutsideresearchspecialistsPurchasedatacollectedbyoutsidefirmsFigure4.2TheMarketingResearchProcessDefiningtheProblemandResearchObjectivesExploratoryresearchUsedtogatherpreliminaryinformationHelpstodefineproblemsandsuggesthypothesesDescriptiveresearchUsedtobetterdescribethemarketpotentialforaproductorthedemographicsandattitudesofconsumersCausalresearchUsedtotesthypothesesaboutcause-and-effectrelationshipsResearchPlan(1of2)OutlinessourcesofexistingdataSpellsoutSpecificresearchapproachesContactmethodsSamplingplansInstrumentsthatresearcherswillusetogathernewdataResearchPlan(2of2)ShouldbepresentedinawrittenproposalTopicscoveredinaresearchplan:ProblemsandresearchobjectivesInformationtobeobtainedHowresultswillhelpdecisionmakingEstimatedresearchcostsTypeofdatarequiredSecondaryData(1of2)InformationthatalreadyexistsCollectedforanotherpurposeSources:Company’sinternaldatabasePurchasedfromoutsidesuppliersCommercialonlinedatabasesInternetsearchenginesSecondaryData(2of2)AdvantagesLowcostObtainedquicklyCannotcollectotherwiseDisadvantagesPotentiallyIrrelevantInaccurateDatedBiasedTable4.1

PlanningPrimaryDataCollectionResearchApproachesContactMethodsSamplingPlanResearchInstrumentsObservationMailSamplingunitQuestionnaireSurveyTelephoneSamplesizeMechanicalinstrumentsExperimentPersonalSamplingprocedureBlankBlankOnlineBlankBlankResearchApproachesObservationalresearchGatheringprimarydatabyobservingrelevantpeople,actions,andsituationsEthnographicresearch:SendingtrainedobserverstowatchandinteractwithconsumersintheirnaturalenvironmentsSurveyresearchAskingpeoplequestionsabouttheirknowledge,attitudes,preferences,andbuyingbehaviorExperimentalresearchSelectingmatchedgroupsofsubjects,givingthemdifferenttreatments,controllingrelatedfactors,andcheckingfordifferencesingroupresponsesPrimaryDataEthnographicresearch:UnderIntuit’s“follow-me-home”program,teamsofIntuitemployeesvisitcustomersintheirhomesorofficestowatchthemusethecompany’sproductsinreallife.Mail,Telephone,andPersonalInterviewingMailquestionnairesareusedtocollectlargeamountsofinformationatalowcostperrespondent.Telephoneinterviewinggathersinformationquickly,whileprovidingflexibility.PersonalinterviewingmethodsincludeIndividualinterviewingGroupinterviewingOnlineMarketingResearchDataiscollectedthroughInternetsurveysOnlinefocusgroupsWeb-basedexperimentsTrackingconsumers’onlinebehaviorOnlineBehavioralandSocialTrackingandTargetingOnlinelisteningProvidesvaluableinsightsintowhatconsumersaresayingorfeelingaboutabrandBehavioraltargetingUsesonlineconsumertrackingdatatotargetadvertisementsandmarketingofferstospecificconsumersSocialtargetingMinesindividualonlinesocialconnectionsandconversationsfromsocialnetworkingsitesSamplingPlanAsampleisa

segmentofthepopulationselectedtorepresentthepopulationasawhole.Decisionsrequiredforsamplingdesign:Samplingunit-PeopletobestudiedSamplesize-NumberofpeopletobestudiedSamplingprocedure-MethodofchoosingthepeopletobestudiedTypesofSamplesTable4.2TypesofSamplesProbabilitySampleBlankSimplerandomsampleEverymemberofthepopulationhasaknownandequalchanceofselection.StratifiedrandomsampleThepopulationisdividedintomutuallyexclusivegroups(suchasagegroups),andrandom

samplesaredrawnfromeachgroup.Cluster(area)sampleThepopulationisdividedintomutuallyexclusivegroups(suchasblocks),andtheresearcher

drawsasampleofthegroupstointerview.NonprobabilitySampleBlankConveniencesampleTheresearcherselectstheeasiestpopulationmembersfromwhichtoobtaininformation.JudgmentsampleTheresearcheruseshisorherjudgmenttoselectpopulationmemberswhoaregoodprospects

foraccurateinformation.QuotasampleTheresearcherfindsandinterviewsaprescribednumberofpeopleineachofseveralcategories.ResearchInstruments(1of2)Questionnairescanbeadministeredinperson,byphone,bye-mail,oronline.Closed-endedquestionsOpen-endedquestionsMechanicalinstrumentsincludePeoplemetersCheckoutscannersNeuromarketingResearchInstruments(2of2)Biologicalandneurologicalmeasures:OnlinetravelgiantExpedia’s“UsabilityLab”usesbiometricsandobservationtolearnaboutthedeep-downtensionsanddelightscustomersexperienceduringtheirtrip-planningjourneys.ImplementingtheResearchPlanDatacollectionResearchersshouldguardagainstvariousproblems.TechniquesandtechnologiesDataqualityTimelinessProcessingthedataCheckforaccuracyCodeforanalysisAnalyzingthedataTabulateresultsComputestatisticalmeasuresInterpretingandReportingFindingsResponsibilitiesofthemarketresearcher:InterpretthefindingsDrawconclusionsReportfindingstomanagementResponsibilitiesofmanagersandresearchers:WorktogethercloselywheninterpretingresearchresultsShareresponsibilityfortheresearchprocessandresultingdecisionsObjectiveOutline4.3SummaryMarketingresearchprocessDefineproblemSetobjectivesDevelopandimplementaresearchplanInterpretandreportfindingsSecondarydata–internalandexternalPrimarydatacollectionObservationalSurveyExperimentalObjectiveOutline4.4Explainhowcompaniesanalyzeandusemarketinginformation.CustomerRelationshipManagement(CRM)(1of2)ManagingdetailedinformationaboutindividualcustomersCarefullymanagingcustomertouchpointstomaximizecustomerloyaltyConsistsofsoftwareandanalysistoolsthatIntegratecustomerinformationfromallsourcesAnalyzedataindepthApplytheresultsBigDataandMarketingAnalyticsMarketinganalyticsconsistsoftheanalysistools,technologies,andprocessesbywhichmarketersdigoutmeaningfulpatternsinbigdatatogaincustomerinsightsandgaugemarketingperformance.CustomerRelationshipManagement(CRM)(2of2)Netflix,bigdata,andCRM:WhilemembersarebusywatchingNetflixvideos,Netflixisbusywatchingthem—watchingthemvery,veryclosely.Thenitusesthebigdatainsightstogivecustomersexactlywhattheywant.DistributingandUsingMarketingInformationMISmustmakeinformationreadilyavailablefordecisionmaking.RoutineinformationfordecisionmakingNon-routineinformationforspecialsituationsIntranetsandextranetsfacilitatetheinformation-sharingprocess.ObjectiveOutline4.4SummaryCustomerrelationshipmanagementIntegrate,analyze,andapplyindividualcustomerdatatobuildstrongerrelationshipsMarketinganalyticsAnalysis,tools,technologies,andprocessestogaincustomerinsightsObjectiveOutline4.5(1of2)Discussthespecialissuessomemarketingresearchersface,includingpublicpolicyandethicsissues.MarketingResearchinSmallBusinessesandNonprofitOrganizationsObtaininggoodmarketinginsightsSecondarydatacollectionObservationSurveysExperimentsResponsibilityofmanagersThinkcarefullyabouttheresearchobjectivesFormulatequestionsinadvanceRecognizethebiasesintroducedbysmallersamplesandlessskilledresearchersConducttheresearchsystematicallyInternationalMarketingResearchTheproblemsfacedincludeDealingwithdiversemarketsFindinggoodsecondarydatainforeignmarketsDevelopinggoodsamplesReachingrespondentsHandlingdifferencesinculture,language,andattitudestowardmarketingresearchThecostofresearchishigh,butthecostofnotdoingitishigher.IntrusionsonConsumerPrivacyFailuretoaddressprivacyissuesresultsinAngry,lesscooperativeconsumersIncreasedgovernmentinterventionBestapproachesforresearchers:AskingonlyfortheinformationneededUsingtheinformationresponsiblytoprovidecustomervalueAvoidingsharingtheinformationwithoutthecustomer’spermissio

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